Loan to Value Calculator (LTV)
Use our simple LTV Calculator.
Our loan to value calculator makes it easy to work out your LTV in seconds. Simply enter your property price and your deposit amount, and the calculator will instantly show you where you stand. You don’t need to manually divide figures or multiply percentages – the calculator does all the work for you.
Understanding your LTV ratio helps you see what mortgage options are available to you. Most lenders offer their most competitive mortgage deals to borrowers with lower LTV ratios. If you can put down a larger deposit, you’ll find yourself in a better position to secure lower interest rates and access a wider choice of mortgage products.
Loan to Value Calculator
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What is Loan to Value (LTV) Ratio?
Put simply, the LTV ratio gives you an idea of how much of the property’s value you’re financing with a mortgage. It’s easy to work out – just divide the mortgage amount by the property’s value, and then express it as a percentage. For example, if your property is worth £200,000 and you take out a £160,000 mortgage, your LTV ratio would be 80%.
LTV Ratio & Mortgage Options
The LTV ratio plays a big role in deciding which mortgage options are available to you. Lenders typically have a maximum LTV limit that they’re willing to go to, which means they won’t approve mortgages that go over that threshold. And higher LTVs are generally seen as riskier by lenders, because that means the homeowner has put less of their own cash into the property.
Generally speaking, homebuyers with lower LTVs get better interest rates and terms. This is because lenders view those homeowners as being more financially secure – they’ve got a bigger chunk of their own money tied up in the property.
Getting to Grips with the LTV Range
Higher LTV Mortgages:
If you have a small deposit, you might be looking at high LTV mortgages (typically 85% to 95% LTV). These are more common for first time buyers who haven’t had time to build up substantial savings. While these mortgages help you get on the property ladder, they do come with higher interest rates because the lender is taking on more risk.
Maximum LTV Limits:
Most mortgage lenders have a maximum LTV they’ll lend at. Many lenders won’t go above 95% LTV, and some specialist products might require you to have a lower LTV to qualify. It’s worth checking what’s available in your LTV band before you start your house hunt.
LTV Ratio & Interest Rates
As we mentioned earlier, lower LTVs tend to come with lower interest rates. This is because lenders see homeowners with a higher equity stake in the property as being less likely to default on their mortgage payments.
Just to clarify, the relationship between LTV and interest rates isn’t a straight line – the difference in rates between LTV bands can be quite small. Still, it’s generally worth trying to get a lower LTV if you can, just to secure the best mortgage option.
How to Calculate Your LTV Mortgage Ratio
Calculating your LTV ratio is a pretty straightforward process:
Work out the property’s value.
Then, determine how much you want to borrow.
Finally, divide the mortgage amount by the property’s value and multiply by 100 – and you’ll have your LTV ratio, expressed as a nice round percentage.
Some Buy To Let mortgages are not regulated by the Financial Conduct Authority
Finding the Best Mortgage Interest Rates
Calculate Your LTV to Compare the Best Mortgage Rates
Getting a handle on your Loan to Value (LTV) ratio is a key part of finding the right mortgage for you. Use our simple calculator to work out your LTV in just a few seconds. All you need to do is enter your property value and mortgage amount.
Your LTV ratio tells lenders which mortgage rates you qualify for. With a lower LTV, you’re likely to get better deals and lower interest rates – while a higher LTV can limit your options.
Once you’ve got your LTV sorted, you can immediately see today’s best mortgage rates, which are updated in real-time so you can see what’s available right now. Whether you’re buying your first home, remortgaging or investing in property, knowing your LTV gives you the facts you need to make informed decisions and get the most out of your mortgage loan.
Give our calculator a go now to find out your LTV and start comparing the most competitive mortgage rates on the market.
Understanding the Jargon
Mortgage amount: The amount you borrow from the lender.
Mortgage balance: How much you still owe during your term.
Repayment term: How long you take to pay the mortgage back.
Rate mortgage: A loan type based on a fixed or variable rate.
Tracker mortgage: One that tracks the Bank of England base rate.
Our mortgage experts will make sure you understand every interest rate message so you can make a decision with confidence. Plus, we’ll explain how your choice might impact your credit score, especially if you’re thinking of applying for multiple mortgages.
Get the Process Started Today
No need to waste time trawling through sites that don’t have any rates or out-of-date data. We’ll help you find the right mortgage for your needs, taking into account fees, features and the flexibility you need. Whether you’re on the hunt for the lowest mortgage interest rates or just want to get a feel for what’s out there, we’ve got up-to-the-minute comparisons.
Ready to get started? Enter your details below – and please make sure you give us accurate information so we can recommend the best mortgage options for you.
Making the Most of Your Mortgage Options
While the maximum LTV limits set by lenders can limit your mortgage options, there are a few things you can do to increase your chances of securing a higher LTV mortgage:
Build up a bigger deposit: Putting more cash down reduces the amount you need to borrow, which means a lower LTV ratio.
Show solid financial stability: Lenders don’t just look at your job history and income when they’re considering a mortgage application – they care about how stable your income is too. And of course your credit score comes into the picture – so do your best to get that score up and show lenders that you’re financially on solid ground. That way, you’re more likely to get your hands on a mortgage with a higher loan to value ratio.
Think about buy-to-let mortgages: Buy-to-let mortgages usually have lower LTV limits than regular mortgages for people buying homes to live in. If you’re planning to buy a property to rent out then it makes sense to explore your options with buy-to-let mortgages.
Get the advice you need from an expert: Having a mortgage broker on side can be a real lifesaver when it comes to navigating the really complicated world of mortgage finance. They’re the ones with the inside knowledge of the mortgage market – they can help you wade through all the different options and find a mortgage that really fits your needs and circumstances.
Ready to speak to an adviser?
Understanding your loan to value is an essential first step in your mortgage journey. Whether you’re trying to work out how much deposit you’ll need, checking if you can access better rates through a remortgage, or simply curious about where you stand, our LTV calculator gives you the information you need in seconds.
If you’d like more detailed advice on your specific situation, consider speaking to a qualified mortgage adviser. They can help you navigate the mortgage market, find the most competitive mortgage deals for your LTV, and ensure you’re making the right choice for your circumstances.
Remember, the mortgage market can change regularly, with lenders adjusting their rates and criteria. What’s available today might be different in a few weeks or months, so it’s worth staying informed and being ready to act when you find the right deal.
